PhotoWorks’ net revenues also dropped, by about 33 percent – from $10.5 million for the third quarter of fiscal 2002 to $7.0 million for 3Q 2003.
The ITC fine was for PhotoWorks’ violation of a previously issued cease and desist order involving Fuji Photo Film Co. patents for one-time-use cameras. PhotoWorks has appealed the FTC action to the Federal District Court of Appeals. The company stated that if it “is required to pay the $1.6 million penalty, it will have a material impact on the financial condition, results of operations and liquidity of the company.”
PhotoWorks also announced that CEO Gary Christophersen will leave that position at the end of the company’s fiscal year in September, but will continue as Chairman of the Board of Directors.
PhotoWorks, founded in 1978 as Seattle Film Works, states it has “led the industry in delivering a number of popular and valuable consumer photo print offerings to millions of customers. Offerings include professional-quality digital prints, online and mail ordering, retail kiosk services and more.” Jerry O’Neill